Morgan said SAP has partnered with Abbott Laboratories (ABT) and is helping the healthcare giant with software services, including logistics, to help get Covid-19 testing and supplies to where they're needed most.

When asked what customers are experiencing, Morgan said customers are asking for tools to help them manage a remote workforce. SAP introduced a new Pulse service that allows employers to listen and collect feedback from employees so they can react quickly to their needs.

Let's check out the charts and indicators of SAP.

In this daily bar chart of SAP, below, we can see how prices plunged about $50 in a few weeks. Trading volume increased significantly in March, telling us that the price weakness moved some investors to sell and others to buy. The On-Balance-Volume (OBV) line turned lower from late January, telling us that sellers of SAP had become more aggressive. The OBV line has turned higher in recent days and that is a positive sign for the stock. The slopes of the 50- and 200-day moving averages are negative and we can also see that the 50-day line has crossed below the 200-day line for a bearish death cross signal. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal -- a step in the right direction.

In this weekly bar chart of SAP, below, we went back a few more years to see the longer-term trend. In this recent sharp decline we see that the lows of 2019 and late 2018 have been broken. The next area where traders would anticipate potential support would be the $90-$80, but prices have stopped short of there. The longer 40-week moving average line has turned down and the weekly OBV line shows a peak back in November 2019. The MACD oscillator is below the zero line in sell territory and only has started to narrow. A positive signal from this indicator will take weeks.

In this daily Point and Figure chart of SAP, below, we can see the price action of SAP with less noise. A trade at $115.37 will be a new high for the move up and should refresh the uptrend. A potential upside price target of $159 is projected.

Bottom line strategy: While the company SAP may be doing the right things during this world crisis, the stock SAP could struggle to overcome potential chart resistance in the $115-$125 area. Even though the Point and Figure chart shows a new high is possible, I think we may be disappointed in the performance of this stock for a while.

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